Cryptocurrency Mining Ban in Iraq: What Happened and Why It Matters

When Iraq banned cryptocurrency mining, the process of validating blockchain transactions using specialized hardware and consuming large amounts of electricity. Also known as crypto mining, it was once seen as a way to generate income from cheap power—until the government stepped in. In early 2022, the Iraqi government shut down all crypto mining operations, citing massive electricity shortages and grid instability. Unlike Iran or Turkey, where crypto thrived despite restrictions, Iraq didn’t just regulate—it outlawed. The move wasn’t just about energy. It was about control.

Miners in Iraq had been using state-subsidized electricity—sometimes paying less than $0.01 per kWh—to run thousands of machines 24/7. In some areas, entire neighborhoods ran on modified power lines feeding ASICs. The result? Blackouts in hospitals, schools, and homes. The central bank didn’t just worry about Bitcoin; it worried about losing its grip on the national grid. The ban didn’t just stop mining—it exposed how fragile infrastructure can be when private actors exploit public resources. This isn’t just a story about crypto. It’s about energy policy, how governments manage power supply and demand in developing economies. And it’s about crypto regulation, how nations respond when decentralized tech clashes with centralized control. Countries watching Iraq’s move—like Egypt, Nigeria, and Venezuela—asked the same question: Can we let crypto mining drain our power, or do we shut it down before it breaks everything?

What you’ll find in the posts below aren’t just news snippets. They’re real-world case studies on how governments react when crypto hits the limits of physical infrastructure. You’ll see how Iran kept trading alive despite payment bans, how Thailand licenses exchanges, and how the UK’s crypto ambitions stalled under bureaucracy. Iraq’s ban wasn’t an outlier—it was a warning. And if you’re wondering whether your country could be next, the answers are already here.